04.29.24

Committee Health Leaders Applaud Biden Administration for Rescinding Trump-Era Rule that Undermined the Affordable Care Act

WASHINGTON – Education and the Workforce Committee Ranking Member Robert C. “Bobby” Scott (VA-03) and Health, Employment, Labor, and Pensions Subcommittee Ranking Member Mark DeSaulnier (CA-10)   released the following statement after the Biden Administration issued a final rule that reverses a Trump-era rule aimed at sabotaging the Affordable Care Act by making it harder for workers and families to get affordable, high-quality health insurance.

“We applaud the Biden Administration for rescinding the ‘Association Health Plan’ (AHP) rule. AHP’s undermine the core promise of the ACA–access to affordable, high quality health care for all. AHPs may provide lower costs to some enrollees, but they do so by skimping on benefits for those in AHPs and increasing costs for everybody else. 

"Specifically, AHPs can create plans with low-risk, young individuals for a pool separate from the ACA Marketplace, leaving everyone else with higher average premiums. AHPs can also exclude certain categories of coverage that would ordinarily be required as Essential Health Benefits, such as maternity care, mental health care, or substance use disorder treatment, to dissuade certain groups or individuals from enrolling, and again leaving families who need those benefits with higher average premiums. Finally, AHPs are not required to comply with consumer protections under state and federal law. 

“If healthy, low-risk individuals can leave the ACA Marketplace risk pool, join a separate association, and pay lower rates, many families who are unable to enroll in AHPs will–on average–be forced to pay higher premiums. By rescinding the AHP rule, the Biden Administration is protecting consumers from health plans that circumvent consumer protection laws, while maintaining the guarantee of affordable health care.”

Ranking Member Scott and Ranking Member of the Subcommittee on Health, Employment, Labor, and Pensions Mark DeSaulnier called on the Department of Labor to rescind the AHP rule in February 2023 and again in February 2024. To read the letters, click here and here. 

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